Which of the Following Statements Regarding the Interpretation of the Receivables

question 112

Multiple Choice

Which of the following statements regarding the interpretation of the receivables turnover ratio is not true?

• A)Analysts often interpret a sudden increase in the receivables turnover ratio as a signal of a developing problem.
• B)The smaller the receivables turnover ratio the larger the days to collect will be.
• C)A change in the receivables turnover ratio may indicate a change in the company's credit granting policies.
• D)A change in the receivables turnover ratio may indicate a change in economic conditions.

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Definitions:

Long-term Memories

Memories that can be retained for extended periods of time, ranging from days to decades, and include events, facts, and experiences.

Hippocampus

A critical structure within the brain involved in memory formation, organization, and retrieval, as well as spatial navigation.

Specialized

Adapted or designed for a specific purpose or function.

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, responsible for basic life functions such as breathing and heartbeat.